Option Investor

Trade Alert “ LEN

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A Good Exit Opportunity!

Shares of Lennar (NYSE:LEN) are trading higher this morning, up nearly $0.75 at $56.33 and the JUN-$55 call options can be sold for $3.15-$3.20 per contract. Traders who close the position near that price should achieve an overall profit of roughly $0.50 per contract or $250 (less commissions). While there is certainly potential for additional bullish activity, the upcoming reports on existing home sales (Tuesday) from the National Association of Realtors, and the Commerce Department's data on new home sales (Wednesday) may have a negative effect on stocks in the homebuilding group. Keep that in mind as you determine a favorable exit point for the play.

MCM Staff

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